Sansan, Inc.

It is now time to begin the third half of the financial statement session of the Sansan Co., Ltd. in May 2024. I'd like to introduce you to today's materials. The presentation will be based on the financial statement materials. We will share the screen on Zoom, but if you participate by phone, please see the materials on our website. Next, I'd like to talk about today's time schedule. We will have a presentation about the financial statement from Hashimoto, the CFO of our company, in about 15 minutes. After that, we will have a session until 11 o'clock. I'd like to start with Hashimoto. Thank you for participating in this meeting.

I'm Hashimoto from CFO. Please look at page 4. This is the highlight of the third quarter of May, 2024. First, sales value and adjusted business profit have improved, and we have been able to make good progress in the central range of the range that is expected to be in the second quarter. Second, sales value of DxService33 has improved significantly due to strengthening of the business system and the growth of the number of contracts has accelerated. Thirdly, the sales volume of the invoice management service Bill One continued to grow steadily even after the start of the invoice system, with no major feedback. From here, I would like to explain the results of the third quarter's three-month period. Please take a look at page 5. The sales volume increased by 33.9% in the previous year. Among them, the organic growth rate, except for the new links by M&A, increased by 30.8%. The decrease in net profit is due to the increased cost of Bill 1, which is still relatively low in profit, but the profit rate of Bill 1 itself continued to improve every month from October to November, when the invoice system was launched, and we expect it to continue to improve in the future. In addition to strengthening human resources, the profit after adjustment has been increased. In addition, the profit after adjustment has been increased. In addition, the profit after adjustment has been increased. In addition, the profit after adjustment has been increased. In addition, the profit after adjustment has been increased. In addition, the profit after adjustment has been increased. In addition, the market-standard profits of parent-owned companies with the same累計実績 have been reduced, but this is mainly due to the fact that in the previous year's same period, the interest rate of related company stocks was reduced. Please take a look at page 6. I will explain about the reduced interest rate of adjusted company profits. The net profit after adjustment was 14,000,000 yen, but as a result of the growth strategy, the advertising advertising cost increased by 33,500,000 yen, and the human resources cost increased by 85,000,000 yen. Please look at page 7 of the external account of each segment. With the 33 Bill 1 business and the 8 business, the profit and loss has increased. In addition, the other segments are linked to the first quarter of this year's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of the company's first quarter of In this article, page 32, you will find the details of the adjustment budget. Next, I will explain the achievements of each segment from page 8. First, I will explain the achievements of the 33 Bill 1 business. The sales volume continued to grow at 33, and the growth of Bill 1 continued to grow at 33.8% in the previous year, with an increase of 33.8%. On the other hand, the operating profit after adjustment remained at 6.7% in the previous year, but this is because both 33 and Bill 1 are promoting the adoption and marketing activities of business leaders. In terms of services, the sales value of 33 increased by 14.6% in the previous year, and the sales value of Bill 1 increased by 160.6%. The other sales growth was mainly due to the success of the Creative Survey Company, which became a group company in March of 2023. The number of contracts in the contract database, Contract1, is now 210 out of 92 in the previous year and the end of the same year. Please take a look at page 9. I will explain the KPI of 33. The graph on the left shows the stock sales of 33, which is a significant achievement with an increase of 14.8% from the previous year. On the other hand, the sales of 33 increased by 9.9% from the previous year and decreased from the growth rate of the second quarter. Other than this, the initial income when the new contract is introduced is specified, but due to the scale and form of the contract obtained, the format and timing are different, and there are properties that are easy to go up and down. Next, as shown in the central graph, the number of contracts increased by 7.1% at the end of the previous year, and the monthly sales value per contract increased by 7.2%. Due to the strengthening of the operating system, the number of contracts at the end of the third quarter has increased by 240, and the acquisition has accelerated compared to the previous year. The increase in the amount of sales per contract was slightly reduced due to the increase in the amount of contracts acquired, but it is evaluated to be a smooth achievement. The graph on the right shows the monthly contractual rate of SANSAN in the last 12 months. The contractual rate of SANSAN was 0.44% at the end of the third quarter and maintained a low level. I would like to introduce one point about SANSAN's future projects. Please take a look at page 10. SANSAN's basic budget is based on the size of the employees of the companies it uses. On top of that, we have provided three editions of Light, Standard, and Enterprise, which have different functions and functions that can be used, as well as various paid options. We have also reviewed the functions and options that can be used in each edition. In addition, we have considered the current market environment and the strengthening of services, and have raised the discount rate by 30% and have started new business activities based on the current price system from February 2024. We expect that these benefits will mainly come from the results of the next fiscal year, May, 2025. As the last part of the explanation, I would like to tell you the current situation. In February, we recorded the highest demand in the past in the short term. The new demand for the third quarter, which is three months, increased by about 24% in the previous year's same period, and increased by about 8% in the previous second quarter. Some of the new orders are already in the third quarter, and others are in the fourth quarter. There are various characteristics, but I think it will be helpful to understand the growth trend. Please see page 11. Next, I will explain the KPI of Bill 1. The graph on the left is the MRR of Bill One. In February of 2024, the annual revenue increased by 149% and the ARR increased by 6.8 billion yen. The ARR goal for May of 2024 is to raise more than 750 million yen, which is a very smooth progress. Next, let's look at the graph in the center. As a result of a successful acquisition of a new contract, the number of paid contracts increased by 100.5% in the same period as the previous year, and the monthly stock sales value increased by 23.9% per paid contract. The graph on the right shows the monthly repayment rate of Bill 1 in the last 12 months. The repayment rate of the third quarter was 0.33%, and it achieved the lowest level in the past when compared with Bill 3. The situation at the foot of the invoice system began, but it is believed that the growth rate due to the loss of interest rates is a little, but the impact is minor. As I mentioned in Part 3.3, this third quarter is also an extremely significant achievement. If we consider the increase in sales of salespeople who are working on a growth strategy, we can expect even better supply from the fourth quarter. Please look at page 12. I will explain the measures that we can expect to further increase growth. The price of Bill 1 is based on the number of requests based on the number of data, but in December 2023, we optimized the price to reflect the market environment and the situation of strengthening the services so far. We are gradually moving forward with our business activities in this new system, and we expect that the effect will gradually emerge after the fourth quarter. We are also working on expanding the scope of the development in Bill 1. Please take a look at page 13. Since the release of the service in May 2020, we have been growing mainly in terms of demand functions, but in February 2022, we installed the delivery function of the application. Also, in June 2023, as an optional function, we provided credit cards for the public as issuers, and expanded our business in the fintech field. I can't tell you more specifically yet, but we are making various preparations for other initiatives, and we hope to introduce them soon. We will continue to focus on the issues around Bill 1, expand our business, and pursue further growth. Next, I'd like to talk about the 8th class. Please look at page 14. As a result of the growth of B2B and B2C services, the sales volume increased by 25.8% in the previous year. In addition to the increase in business profits after adjustment, the sales management focused on profitability, and the red market share decreased by 44 million yen. Page 15 shows the results of each market period. The sales of the third and third market periods have decreased in the second and third market periods due to the fact that large-scale business events are not held in this market period. Usually, large-scale events are held in the second and fourth market periods, and we are planning to do so in this period as well. After adjustment, the operating profit is expected to be black in the second period, and the progress is smooth. Finally, I would like to talk about the progress of the long-term business performance forecast. Please look at page 17. To explain the progress of the long-term business performance forecast of the third quarter, the sales volume is close to the upper limit of the expected range. In addition, the sales profit after adjustment is in line with the central value. Therefore, there is no change in the forecast figures announced by the agency. That's all for today. Thank you very much.